How to make the most of your PPF

I read a similar sounding article in economic times - Weath, today , but felt i can put it in a more simpler and understandable way..so here i go

In case you do not have a PPF account , wake up , open one today , as a debt component of your retirement planning , i do not think there is any better instrument in the market

One you have a PPF , make sure you do these to get the maximum benefits

1) Contribute max limit of Rs.70,000 each year .

This is maximum you can contribute , so use the entire limit

2) Make sure you deposit this amount by 5th of April, each year

Interest is calculated on the amount in the account between the 1st and 5th of each month , so if you deposit by 5th of April , it would accrue full interest for the entire year

3) Never withdraw any amount from this account

For compounding to work to its full potentially , never touch the money in your PPF account

4) Always renew the PPF account once it has completed 15 years

So that you can continue to use the power of compounding

Take care to follow these four steps , and your PPF account would contribute substantially to your retirement nest egg

Image : FreeDigitalPhotos.net,Photographer: renjith krishnan